This week, the scenario of inadequate demand persists in the southern European longs market, with the segment unable to find traction and, in certain instances, experiencing a further deterioration.
In Italy’s local rebar segment, the relentless decline in prices persists. Sources indicate a pricing range of €300-310/mt ex-works base (€565-575/mt ex-works including regular extras), with some offers dipping below €300/mt ex-works base. An Italian trader noted that not all producers are engaging in this price war, with some maintaining offers at last week’s range of €320-330/mt ex-works base (€585-595/mt ex-works including regular extras).
The market, especially in Italy, finds itself trapped in a vicious cycle: buyers anticipate reductions in longs offers due to expectations of a decrease in scrap prices, compounded by minimal demand from mills. Conversely, mills are reducing production due to sluggish demand, resulting in decreased needs for scrap. An Italian producer remarked, "We are approaching a breaking point, and I fear it will be severe."
Export demand via shipping remains nearly absent. Ex-Greece rebar offers have been reported at €610/mt FOB, with wire rod offers at €630/mt FOB, maintaining stability compared to the previous week. A Greek producer commented, "The market is mirroring the broader European trend of moderate to low demand. We are closely monitoring fluctuations in raw material prices to anticipate the next move." Ex-Italy rebar offers have been reported at €555-560/mt ex-works by truck, aligning with prices in the local market.
In the import segment, ex-Turkey rebar offers have been reported at €570-580/mt CFR for shipments in late March-April, stable compared with the previous week's prices. Ex-Turkey wire rod offers have been reported at €580-585/mt CFR for the same shipment period, down by €5/mt compared to the previous week. Ex-Egypt rebar has been reported at €560-565/mt CFR, with wire rod priced at €570-580/mt CFR. Although witnessing a decrease of approximately $5/mt, prices have stabilized within the CFR range due to fluctuations in the US dollar-euro exchange rate. Offers from Asia are now at around €550/mt CFR for wire rod. In the first half of March, according to sources, some deals for relatively large ex-Asia wire rod lots have been closed to Europe at around €560-565/mt CFR.